Fannie Mae-No Politics (FNMA)

[Mnemonic]

Interesting to note:

Determine whether the planned capital distributions...would be consistent with effective capital distribution limitations assuming the stress capital buffer provided by FHFA

Basically says dividends won't get paid until all capital buffers are reached, which is something we already figured.

BUT, does this not also imply that the senior preferred dividends couldn't be paid until buffers are reached? I know it's probably meaningless because the seniors need to be monetized before capital can be raised anyway, but it makes me feel better that we're ensuring that no more money goes out the door to Treasury, either. I was always irrationally concerned that Treasury would revert to a 10% model--as SCOTUS shat on the NWS--and reverse the Calabria work that prevented distributions during the capital build.